GAS

Natgas, HNU update

Hamilton

See our post of April 18, 2012,  under Natgas, HNU and Gas. The last one we could not find anymore, it is the Claymore ETF but the two others will suffice. Here are today’s charts;

Natgas jan 24 2014HNU jan 24 2014

There may well be a lot more to go, but we do not like the speed at which things have gone up recently and also we do not like the DJ Titans Gas 30 index. So we recommend stepping aside. On both you have easily doubled your money in just under two years, which, using the rule of 72 amounts to a return of 36%, compounded per annum. Note that the RSI and the MACD are not confirming the higher prices. Also, on the futures, there is a fairly large premium on the front (spot) contracts but that quickly turns around when you go out further in time (backwardation) all of which points to lower, not higher prices in the future.

HNU update, GAS update

Hamilton

HNU june 2012

Fortunately we recommended selling at $14+, see previous blog. If the a-b-c is correct, a new low should be forthcoming, after a 5-wave move. There is already one there but not yet complete. It is a buy soon and certainly under $8.

GAS, the other ETF is just a little clearer;

gas june 2012

The counts are not clear on either, but in the case of GAS the latest drop down looks a lot more like an a-b-c, which is corrective, perhaps a wave 2. It should then not make a new low!

HNU and GAS

Hamilton

This blog was filed less than a month ago under “Natgas HNU GAS”. The recommendation was to buy HNU then at $8.42 and GAS at $8.50 Here they are today;

hnu may 18 2012gas may 18 2012

The HNU traded well through $14. and peaked at $14.22 today, so far. GAS peaked at $12.44 We are out, not because we think these ETFs cannot go higher, but because we are not sure. Take the 50% or so profit for the month and move on.

The HNU actually peaked today at 14.74 but closed lower. The trading has all the earmarks of desperation but given all the other excesses who knows what can happen.